Boosting Sugarcane Productivity: Petrokimia Gresik Strengthens Collaboration with SGN's Prosper Program

Petrokimia Gresik, a member of the Pupuk Indonesia Agroindustrial Solutions company, along with PT Sinergi Gula Nasional (SGN), a subsidiary entity of the sugar subholding of PT Perkebunan Nasional (PTPN) Group, is once again driving the increase in sugarcane productivity through the Makmur program. This is marked by the signing of a Memorandum of Understanding (MoU) between the President Director of Petrokimia Gresik, Dwi Satriyo Annurogo, and the President Director of SGN, Aris Toharisman. The signing was witnessed by the President Director of PTPN III Holding, Mohammad Abdul Ghani, in Gresik, East Java, on Wednesday (3/6/2024).

Dwi Satriyo expressed gratitude for the collaboration with SGN over the past three years. He welcomed this fourth-year collaboration as a joint commitment to continuously improve national sugarcane productivity sustainably, ultimately leading to the welfare of sugarcane farmers and the fulfillment of national sugar needs.

The Makmur program collaboration between Petrokimia Gresik and SGN began in 2021 with a land area of 3,355 hectares (Ha). This collaboration and synergy continued in 2022, with an increased cooperated land area of 40,899 Ha. Furthermore, in 2023, the land area increased further to 42,901 Ha, a 4.9 percent increase compared to the previous year.

"Our hope is that this collaboration continues so that the beneficiaries of the Makmur program, especially in the sugarcane cultivation sector, can increase. With abundant harvests, farmers will prosper, and national sugarcane productivity will increase. This collaboration also serves as support from Petrokimia Gresik and SGN for the sugar self-sufficiency program continually promoted by the Government," said Dwi Satriyo.

The Makmur program itself is a transformation program initiated by the Ministry of State-Owned Enterprises of the Republic of Indonesia, implemented by the Pupuk Indonesia Group along with seven other state-owned enterprises, including Petrokimia Gresik. This program creates an agricultural ecosystem from upstream to downstream, both on-farm and off-farm, in collaboration with various stakeholders including banking institutions providing capital assistance to farmers, insurance institutions, and agricultural off-takers.

In this collaboration, SGN acts as the off-taker or purchaser of sugarcane produced from the Makmur program to provide market guarantees to sugarcane farmers. Petrokimia Gresik, on the other hand, ensures the provision of non-subsidized fertilizers to sugarcane farmers affiliated with Sugar Mills (PG) under SGN's scope.

"Petrokimia Gresik will also conduct balanced fertilization, cultivation guidance, pest and disease control, as well as soil testing by Petrokimia Gresik's Soil Testing and Agroman Mobile officers. With this support, farmers receive fertilizer recommendations tailored to soil conditions and crop needs, resulting in more precise application. Fertilizers can be applied effectively and efficiently," explained Dwi Satriyo.

Meanwhile, the President Director of PTPN III Holding, Mohammad Abdul Ghani, stated that the Makmur program is a solution to the problems faced by smallholder sugarcane farmers. Historically, farmers' incomes have only been sufficient for sustenance, leaving no surplus for investment in technology upgrades, land improvement, or other productivity-enhancing programs for smallholder sugarcane cultivation.

"Petrokimia Gresik has modern fertilizers and technology for sugarcane cultivation that can increase productivity. Let's implement this together as a pilot project, which can serve as a benchmark for farmers in other regions," he emphasized.

In the same vein, Aris Toharisman, the President Director of SGN, welcomed this collaboration on the Makmur program. He highlighted the importance of fertilizers in enhancing sugarcane productivity, alongside the timing of planting and the varieties of sugarcane planted.

"This collaboration supports the government's target of achieving sugar self-sufficiency by 2028. As the area of sugarcane plantations expands, the future demand for fertilizers will increase. Through this collaboration, affiliated farmers will find it easier to obtain quality fertilizers," he asserted.

Finally, Dwi Satriyo added that throughout 2023, Petrokimia Gresik had implemented the Makmur program on a land area of 130,497 hectares across various regions in Indonesia and with various commodities. The largest realization was in sugarcane cultivation, covering an area of 53,888 hectares, resulting in increased sugarcane productivity and yield.

"High productivity and yield are essential. Therefore, quality agricultural facilities and infrastructure such as fertilizers and pesticides, as well as proper cultivation techniques, are needed. This is where Petrokimia Gresik's role comes in through the Makmur program," concluded Dwi Satriyo.